Judgments

Bankruptcy offers relief from the crushing mountain of debt which can come from a variety of sources, including, medical debt, credit card debt, tax debt, and even civil judgments.  At The Los Angeles Bankruptcy Firm, we help individuals and families throughout Southern California find a legal solution to their financial straits, including a Chapter 7, Chapter 11, or Chapter 13 solution to debts imposed by civil court judgments.

When you owe money on a secured debt, the secured creditor can take action to foreclose or repossess the property which you have put up as security or collateral on the loan.  An unsecured creditor does not have this advantage.  The unsecured creditor must instead go to court and secure a money judgment and then must further avail itself of various judicial and legal means to collect or execute the judgment.  Methods of doing so may include a wage garnishment, a levy or lien on real or personal property (writ of attachment), or a debtor's examination in court.

Depending upon the type of judgment, it may be possible to have a civil judgment discharged in bankruptcy.  In general, if the judgment is based on an underlying unsecured debt that was unpaid, such as credit card or medical debt, the judgment is likely dischargeable in bankruptcy the same way the debt itself would have been.  However, if the judgment is based on a civil tort, such as an intentional tort or drunk driving, then the judgment may not be dischargeable.

As noted above, a judgment creditor may obtain a lien on your property to satisfy the judgment.  When this happens, it may be possible to remove the lien, although it requires additional time and expense to achieve. It is better to file for bankruptcy before the creditor is able to attach a lien in the first place.

Breathing Room and a Fresh Start

Whether the judgment is ultimately discharged or not, the protection provided by bankruptcy's automatic stay provision will stop or prevent any attempts to collect on the judgment while the bankruptcy is pending.  In the meantime, you can formulate a strategy to get out from under this mountain of debt, whether it is through a Chapter 7, Chapter 11, or Chapter 13 plan. Contact The Los Angeles Bankruptcy Firm for a free consultation regarding your debt load and how any civil money judgments will likely be treated by a bankruptcy court.